AWS Cloud Revenue Jumps 45% in Q4, Microsoft Azure Revenue Up 76%

Jessica Lyons Hardcastle | February 01, 2019

AWS Cloud Revenue Jumps 45% in Q4, Microsoft Azure Revenue Up 76%
Amazon and Microsoft, the No. 1 and No. 2 public cloud providers, both reported earnings this week and said their respective cloud businesses again drove overall profits. On Thursday, Amazon reported that fourth-quarter revenues increased 20 percent year over year to $72.4 billion in 2018. Operating income grew to $3.8 billion in quarter, an 81 percent year-over-year increase. And for the full year, operating income jumped nearly 203 percent, hitting $12.4 billion. The company’s cloud unit, Amazon Web Services (AWS), saw revenue increase 45 percent, to $7.4 billion in the quarter. AWS’s operating income jumped 61 percent, to $2.18 billion. But Amazon’s first-quarter guidance disappointed analysts and sent its stock falling more than 4 percent in after-hours trading on Thursday and into Friday. The company forecast first-quarter 2019 revenue of between $56 billion and $60 billion, or between 10 percent and 18 percent growth compared with first quarter of 2018. And while the company’s cloud sales continue to grow, “it’s worth pointing out that these numbers are a far cry from the torrid 60-precent to 70-percent-plus growth rate the company enjoyed just a couple of years ago,” said Charles King, Pund-IT president and principal analyst. “I’m not disparaging AWS — growing by nearly half year over year is a terrific accomplishment. But as the company and the cloud market continues to mature and competitors keep strengthening their positions, I expect AWS’s sales will continue their slow decline.” AWS’ top cloud competitor, Microsoft, also reported its quarterly earnings this week. The company said its revenue in its second quarter fiscal 2019 increased 12 percent year over year to $32.5 billion, and operating income hit $10.3 billion, an 18 percent increase. Wall Street, however, expected slightly higher revenue, and this sent Microsoft’s stock falling about 4 percent late Wednesday. “The company’s earnings call disappointed some due to what was a considered a ‘stall’ by Azure earnings — which grew at the same 76 percent rate that they did last year,” King said.  “The real question is whether Microsoft can accelerate Azure sales or if, instead, the company’s cloud revenues have peaked and are entering a cycle similar to AWS’.

Spotlight

How do you go about selecting a CMS in a business environment that is characterized by customers who expect to be able to move seamlessly between different devices throughout the buying process? Customers and employees demand to engage with you on whatever device they have within reach, and at any m


Other News

AI APPLICATIONS

Enterprise AI platform Dataiku launches managed service for smaller companies

Dataiku | June 15, 2021

Dataiku is going downstream with a new product today called Dataiku Online. As the name suggests, Dataiku Online is a fully managed version of Dataiku. It lets you take advantage of the data science platform without going through a complicated setup process that involves a system administrator and your own infrastructure. If you’re not familiar with Dataiku, the platform lets you turn raw data into advanced analytics, run some data visualization tasks, create data-backed dashboards and train machine learning models. In particular, Dataiku can be used by data scientists, but also business analysts and less technical people. The company has been mostly focus...

Read More

AI TECH

Tech Mahindra and Subex Partner to Drive Scale Adoption of Blockchain-based Solutions for Telecom Operators Globally

Subex | November 05, 2020

To enable fraud mitigation and drive operational efficiencies for communication service providers by reducing compliance complexities and faster time-to-market 5th November 2020, BENGALURU, INDIA – Tech Mahindra, a leading provider of digital transformation, consulting, and business re-engineering services and solutions, and Subex, an industry leader in providing services based on Digital Trust, have announced strategic partnership to roll-out blockchain based solutions for telecom operators globally. These solutions will enable fraud mitigation and drive operational efficiencies for communication service providers (CSP) by reducing compliance complexities and faster tim...

Read More

Google Cloud and STS to Automate U.S. Navy Maintenance Inspections Using AI and ML Technology

Prnewswire | August 28, 2020

Google Cloud and Simple Technology Solutions (STS)—a Google Cloud partner and small business specializing in multi-cloud solutions for the federal government—today announced they are working with the U.S. Navy to modernize the maintenance and repairs inspection process for Navy vessels and facilities. STS will use Google Cloud artificial intelligence (AI) and machine learning (ML) technologies on inspection drone-captured images to detect, prioritize, and predict its maintenance needs. The work was awarded to STS as a Phase I Small Business Innovation Research project due to the technology innovation and potential for commercialization....

Read More

THE BEST UPWORK AGENCY – THE FOURTH AWARD

MobiDev | July 24, 2020

This year MobiDev won the fourth award as Upwork’s Best Agency in Ukraine. The first place in the Web, Mobile & Software Development category is ours for the fourth year in a row. Although this year, the Upwork Ukraine Awards Ceremony took place online in Zoom, that didn’t stop us from attending it.We are proud to keep the leading position and to justify the confidence of our clients for many years. Without such an awesome team none of this would have been possible. Thank you, guys! Alone we could do so little, together we are capable of so much....

Read More

Spotlight

How do you go about selecting a CMS in a business environment that is characterized by customers who expect to be able to move seamlessly between different devices throughout the buying process? Customers and employees demand to engage with you on whatever device they have within reach, and at any m

Resources

Events